Oscar Health Inc

Oscar Health reported second-quarter results that significantly exceeded Wall Street expectations, yet its stock declined following the earnings call. Revenue reached $4.88 billion, a 70.4% year-over-year increase and 2.9% above analyst estimates of $4.74 billion, while adjusted EPS of $1.10 far surpassed the $0.38 consensus. Adjusted EBITDA came in at $415.3 million versus the $170.9 million expected, and operating margin improved to 8% from negative 8% a year earlier. CEO Mark Bertolini attributed the performance to disciplined pricing, technology-driven cost efficiencies, and strong execution in the individual health insurance market, with membership up 46% and administrative cost ratios at historic lows. During the call, analysts questioned management on outpatient utilization trends, visibility into medical loss ratio guidance, rate positioning for 2027, the ICHRAx partnership, and the financial impact of CMS eligibility reviews on member disenrollment.

Elevance Health shares fell about 8% in premarket trading after the insurer reported a higher-than-expected benefit expense ratio in its second quarter of 2026, sending shares of Molina Healthcare, Centene, and Oscar Health lower. The benefit expense ratio, which measures the proportion of premiums paid out for medical care, rose 80 basis points year-over-year to 89.7%, exceeding the 90.15% projected by analysts according to LSEG data. Elevance attributed the increase mainly to rising medical cost trends in its Government businesses. Despite beating earnings estimates with adjusted earnings per share of $7.45 and raising its full-year adjusted EPS guidance to at least $27.00 from $26.75, total operating revenue grew only about 1% year-over-year to $49.8 billion, while total medical membership dropped roughly 2% to about 44.9 million amid declines in Medicaid and Medicare enrollees.

Alignment Healthcare reported first-quarter revenues of $1.24 billion, up 33.3% year on year, exceeding analysts' expectations by 1.3%. The company added 48,500 customers to reach a total of 284,800, but its EBITDA guidance for the next quarter missed analysts' expectations, making it the weakest guidance update among the 12 health insurance providers stocks tracked. CVS Health posted the biggest analyst estimate beat with revenues of $100.4 billion, up 6.2% year on year, while Cencora had the weakest quarter with revenues of $78.36 billion, falling short of expectations by 3.9%. Oscar Health reported revenues of $4.65 billion, up 52.6% year on year, but lagged analysts' expectations by 5.7%, and Progyny reported revenues of $328.5 million, up 1.4% year on year, surpassing expectations by 0.7% and achieving the highest guidance raise among its peers. Overall, the group's revenues beat consensus estimates by 1.4%, and share prices have risen 36.3% on average since the latest earnings results.

Health insurance providers tracked by StockStory reported a strong first quarter, with aggregate revenues beating analyst consensus estimates by 1.4% and next-quarter revenue guidance in line. CVS Health was the standout, reporting revenues of $100.4 billion, up 6.2% year on year and exceeding expectations by 6.3%, while also beating full-year EPS guidance estimates. Cigna posted revenues of $68.52 billion, up 4.7% and beating estimates by 3%, but its stock fell 3.8% as investor expectations ran higher than published projections. Cencora was the weakest performer, with revenues of $78.36 billion missing estimates by 3.9%, sending its shares down 8.1%. Oscar Health saw revenues jump 52.6% to $4.65 billion, though that still came in 5.7% below expectations, while Centene topped estimates by 6.2% with revenues of $49.94 billion, up 7.1%, and lost 1.36 million customers to end the quarter with 26.27 million. On average, share prices across the 12-stock group have risen 31.4% since the latest earnings results.